REK

Reko International Group Inc. (TSX VENTURE:REK) today announced results for its
first quarter ended October 31, 2013.


Financial Highlights:



                                                       Three Months         
                                                        (unaudited)         
                                              ------------------------------
                                              ------------------------------
                                                       Fiscal         Fiscal
                                                         2014           2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Sales                                          $        8,469 $       10,737
Net income                                                 42            751
EPS basic                                                0.01           0.12
Working capital                                         9,417          2,673
Shareholders' equity                                   27,756         26,783
Shareholders' Equity per Share                           4.32           4.17
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Consolidated sales for the quarter ended October 31, 2013, were $8.5 million,
compared to $10.7 million in the prior year, a decrease of $2.2 million or
20.6%. The decrease in sales was largely related to decreases in demand in both
the capital equipment and automotive markets.


Gross profit for the quarter ended October 31, 2013, was $1.3 million, or 15.3%
of sales, compared to a gross profit of $1.7 million, or 17.1% of sales, in the
prior year. The decrease in gross profit related to the decrease in sales.


Selling and administrative expenses for the quarter ended October 31, 2013 were
$1.2 million, or 14.1% of sales, compared to $1.1 million, or 10.3% sales, in
the prior year. The increase in SG&A relates to increases in wages and benefits
as a result of hiring additional employees, increases in travel expenses related
to pursuing new sales opportunities, and increase in sales commission as a
result of change in our sales mix.


Net income for the quarter ended October 31, 2013 was $0.04 million or $0.01 per
share, compared to net income of $0.8 million, or $0.12 per share in the prior
year.


"Our first quarter results were impacted by low volumes in all our markets
resulting in a direct impact to the bottom line," stated Diane Reko, chief
executive officer. "Improvements to our cost structure allowed us to work
through this period of slow demand, achieving breakeven results, and maintaining
the strength of our balance sheet. We are hopeful that demand in the capital
equipment market will improve so as not to negatively impact upcoming financial
results."


About Reko International Group Inc.

Reko International Group Inc. is a publicly traded, certified woman owned
manufacturing company located in Southwestern, Ontario. Established in 1976,
Reko International Group Inc. is a diverse value-added designer and manufacturer
of customized machining and engineering solutions to OEMs and their Tier I
suppliers in dynamic sectors as rail equipment, oil and gas distribution,
mining, military, capital equipment, and automotive.




REKO INTERNATIONAL GROUP INC.                                               
469 Silver Creek Industrial Drive Lakeshore, Ontario                        
N8N 4W2                                                                     
http://www.rekointl.com/                                                    



SUBSIDIARIES/DIVISIONS:

Canada: 



--  Concorde Precision Machining Inc. 
--  Reko Manufacturing Group Inc. 



United States: 



--  Reko International Sales Inc. 
--  Reko International Holdings Inc. 
    --  Reko Global Services, LLC 



Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Reko International Group Inc.
Carl A. Merton
Chief Financial Officer
(519) 727-3287
www.rekointl.com

Reko International Group Inc. (TSXV:REK)
Historical Stock Chart
From Nov 2024 to Dec 2024

Reko International Group Inc. (TSXV:REK)
Historical Stock Chart
From Dec 2023 to Dec 2024